When Taxes Decrease,consumption

question 38

Multiple Choice

When taxes decrease,consumption

• A)decreases as shown by a movement to the left along a given aggregate-demand curve.
• B)decreases as shown by a shift of the aggregate demand curve to the left.
• C)increases as shown by a movement to the right along a given aggregate-demand curve.
• D)increases as shown by a shift of the aggregate demand curve to the right.

---

Definitions:

Groupthink

A behavior pattern in a collective setting, driven by the urge for harmony or uniformity, which culminates in unsound or faulty decisions.

Devil's Advocate

A role assumed in discussions or arguments to challenge ideas and assumptions by taking an opposing viewpoint, often to clarify or test the strength of the ideas.

Apple Polishing

Informal practice of attempting to gain favor by flattering or trying to please someone.

Groupthink

In a group environment, the need for consensus or conformity creates a psychological effect that results in poor or illogical decisions.